High quality companies outperformed lower quality companies by almost 300 basis points annually over the test period.
High quality companies outperformed the S&P 500 by 110 basis points annually over the 19 - year period through the end of 2004, according to S&P's research.
Not exact matches
A 2013 Gallup study shows that
companies in the top quartile for employee engagement
outperform their bottom 25 % competitors with: 147 %
higher earnings per share (no, that's not a typo), 22 %
higher profitability, 21 %
higher productivity and 41 % fewer
quality defects.
For example, stocks of
companies that generate superior profits, strong balance sheets, and stable cash flows would be considered
high -
quality, and have tended to
outperform the market over time.
Or take a look at
quality companies, characterized by
high profitability, steady earnings and low leverage, which have typically
outperformed when market volatility rises, according to a paper by Richard Sloan.
Research has shown that
higher -
quality companies, on average,
outperformed lower -
quality companies over a long - term investment horizon.
Based on a study that S&P performed using market - weighted portfolios of
high and low
quality companies, they found that
high quality companies have
outperformed both the market and lower
quality companies over the long term.
He cites NOBL among ETFs that invest in
companies that have consistently increased their dividends and adds: «historically,
high quality stocks have
outperformed low
quality stocks by a significant margin.»
If gold and silver rise significantly, then highly leveraged — operationally and financially — leveraged
companies will vastly
outperform higher quality large cap miners like Agnico - Eagle (AEM) for example.